After President Trump confirmed the establishment of a Bitcoin strategic reserve, the price of Bitcoin (BTC) surged above $90,000, causing the total market capitalization of cryptocurrencies to spike by 8%, reclaiming the $3 trillion mark.
Despite the rise in BTC, its dominance (BTC.D) fell from 55.4% to below 50%, indicating an increasing shift of capital towards altcoins. Historically, declines in BTC.D often precede expansions in the altcoin market.
Trump's crypto strategic reserve plan has triggered market volatility
Trump announced that the U.S. 'crypto strategic reserve' will include Ripple (XRP), Solana (SOL), and Cardano (ADA), triggering significant increases in these assets.
Critics, however, argue that Bitcoin should be the sole asset in the strategic reserve. Trump later clarified on Truth Social that Bitcoin and Ethereum would serve as the core assets of the reserve. Nevertheless, high market cap altcoins still experienced significant volatility and capital inflow.
Market Performance: Divergence Between BTC and Altcoins
BTC price soared by 9.44%, marking the longest bullish candlestick since the rebound after the election. XRP rose by 34.13%, and ADA recorded a historic single-day increase of 72.15%, returning to the $1 level. Near 👗伽#Btc7774
However, Bitcoin's dominance quickly rebounded after an initial decline, and as of the time of writing, BTC.D rose to 61.44%. Meanwhile, altcoins like XRP, ADA, and SOL retraced more than 10%, failing to confirm resistance levels turning into support in higher timeframes.
Bitcoin Dominance Rebounds: Future Trend Outlook
After the highly anticipated executive approval of the strategic reserve, there remain divisions in the market. Speculation around the inclusion of altcoins has intensified, with analysts debating whether this is a strategic liquidity move or an attempt to influence market structure. Altcoins surged rapidly after the news report and then quickly collapsed, further intensifying this debate.
Bitcoin's dominance has increased by 1.75%, indicating a potential shift in capital allocation. However, BTC still faces volatility and must hold above the support level of $88,000 in the coming days to confirm market strength.
If BTC can maintain its current level and break through key resistance, it may see further gains; conversely, if it falls below the support level, the price may decline further.
